U.S. Crude Inventories Drop, Exports Surge as Gasoline Stocks Rise

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ENERGY,OIL,INVENTORIES

U.S. crude oil inventories declined by 934,000 barrels in the week ending December 13th, driven by a surge in exports. Meanwhile, gasoline stocks increased, while distillate inventories also fell. The Energy Information Administration (EIA) reported these figures, noting a widening spread between Brent and U.S. West Texas Intermediate (WTI) futures, which encouraged more crude exports to higher-priced markets.

U.S. crude and distillate inventories fell in the week ending Dec. 13 as exports surged, while gasoline stockpiles rose, the Energy Information Administration said on Wednesday.

U.S. crude exports rose by 1.8 million barrels per day last week to 4.89 million . Crude stocks at the Cushing, Oklahoma, delivery hub rose by 108,000 barrels to 23 million barrels, the EIA said. He pointed to a widening of the spread between Brent and U.S. West Texas Intermediate futures at the end of November to nearly $4.50 a barrel, which encouraged more flows across the Atlantic Ocean to higher priced markets. That spread was trading around $3.40 a barrel on Wednesday.Oil futures extended gains on Wednesday following the report. Global Brent futures were up 77 cents to $73.96 a barrel at 10:52 a.m. EST , while WTI futures were up $1.05 to $71.13 a barrel.

“Refiners are running pretty hard for this time of year,” said Phil Flynn, a senior analyst for Price Futures Group. “It’s probably reflective of the fact that demand that is pretty darn good.”

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